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TMI Blog2013 (9) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... duced all the relevant vouchers. Moreover the learned AO did not bring any materials on record that the assessee has claimed excess expenditure. In such circumstances the estimated addition does not necessarily indicate that there is concealment of income or furnishing of inaccurate particulars of income on the part of the assessee - Decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... mission:- 5. …… The notice u/s. 271 (1) (c) of the Act was not served on the appellant as no such notice was received by the appellant. The notice might have been served on a stranger but not on the assessee. In the absence of Notice, the assessee could not submit the explanation before the Assessing Officer. 1. The only ground involved in the case the levy of penalty u/s. 271 (1) (c) of the Act on following additions made in order passed u/s 143(3) of the Act on 26.12.2008. 2. The Assessing Officer made disallowance of 20% of Rs.1,37,46,363/- claimed by the assessee for various expenses as under: 1. Karigar Majoori expenses Rs.1,32,48,051 2. Legal charges Rs. 17,050 3. Salary & wages Expenses Rs. 3,95,500 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enclosed. iv. The workers having left the premises due to closure of business on account of recent heavy lay off in diamond business and therefore, they cannot be produced. v. The Assessing Officer admitted to have received copies of wage registers which were submitted after verification of original register by Assessing Officer. The Registers reveal the piece wise records of work done. vi. In para "h" the Assessing Officer accepted to have verify labour Registers and piece wise production details. vii. The postal addresses of workers are not maintained by appellant as most of the workers come from the nearby villages of partners of appellant firm i.e. from Saurastra Region. viii. Since, the premises are rented the Electricity bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench deleted the addition of 10% of labour expenses disallowed by Assessing Officer. The copy of order of ITAT is enclosed. 8. The details of Miscellaneous Expenses submitted to Assessing Officer during assessment proceedings are as under:- Head of Account Amount Bank charges 14120 Factory Expenses 53545 Office Expenses 6525 Stationary & Printing 3444 Miscellaneous Expenses 8128 Total Rs. 85672 The copies of accounts of all above expenses submitted to Assessing Officer are enclosed. 9. The following evidences submitted to Assessing Officer during assessment proceedings are enclosed. i. Copy of Reply dtd. 14.10.2008 ii. Copy of Reply dtd. 16.12.2008 iii. Copy of Notice dtd. 08.12.2008 Thus, the lump-sum disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer estimated higher income. I the following cases it has been held that even if the bills, vouchers are not produced or in cases where the same are produced are defective, the penalty cannot be levied in cases where the element of exact profit is not certain. i. The decision of the Hon'ble Supreme Court in CIT vs. K. C. Builders reported at 265 ITR 562. ii. The decision of ITAT in CIT vs. Sahyog Sahakari Samvida Samity reported at 111 TTJ 540. iii. The decision of the Hon'ble Allahabad High Court in CIT vs. Raj Bans Singh reported at 276 ITR 351 iv. The decision of the Hon'ble Allahabad High Court in CIT vs. Harman Singh reported at 106 ITR 532." 3.2 The learned CIT(A) after taking into consideration of the above submis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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